Financial Statements (AQ2013) Practice Assessment 1 Task 1.6 (Inventories)

agngaw

Hello everyone,

I wonder if someone could help me, I am a bit stuck on the practice assessment task 1.6 in relation to calculating inventories.

The answer is 754 but I am not sure how to get to this answer?
Please help!

Thanks you
Agnes

Adele69

consolidated inventories (prior to any adjustments = 758 ( Beacon 537 + Hill 221)
as given in the answer

from the further info: Beacon sold inventory (costing 40) to Hill for 60, and one fifth remain unsold, so (60 x 0.2) - (40 x 0.2) = 12 - 8 = 4 to be deducted from inventories as the intercompany adjustment